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You Are Dropping Your Friend Back Home After a Night

question 6

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You are dropping your friend back home after a night at the movies.From the car,she turns on the indoor lights in her home using an app on her phone.How is your friend able to do this?


Definitions:

Average Tax Rate

The percentage of total income that is paid as tax, calculated by dividing the total tax amount by the total income.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed; refers to the percentage of tax applied to the last dollar earned.

Tax Base

The total amount of assets or income that can be taxed by a government, providing a source of revenue.

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